Right-click and run these files as Administrator:2010_vcredist_x86 - Select 'Repair' if prompted.GfwlivesetupOpen the 'DirectX' folder and run 'DXSETUP.'

Right-click 'GameSW' in "...\Steam\SteamApps\common\toy soldiers" select 'Properties.'Now select 'Compatibility' and tick 'Run as Administrator.'Do the same with 'Game.'Then do this with 'Steam' located in the "...\Steam\" folder.

If using Windows XP:Press the Windows Key + RType 'Regedit' without quotes.Navigate to "HKEY_CURRENT_USER\SOFTWARE\Valve"Right-click the 'Valve' folder and select 'Permissions.'Check that 'Administrator' and 'SYSTEM' have 'Full Control Ticked.'

OK, had a bit of a time finding it, but after adding yet more info about my WL account, it then let me activate the key and then it dowloaded and installed yet more updates.. but now the game is working!! Thanks, Zoreslav, very much. I guess no one else here knew how to do that? There was no info on Steam about it either. This is something that needs to be fixed, or at least, pointed out to people trying to install the game.. maybe a sticky about itActivate the key need through the site Windows Live https://live.xbox.com/

Had this issue as well. Decided to upgrade my laptop's video drivers (Intel HD 3000). That, and likely a reboot after having manually tried to run the support installs, seemed to do the trick. See if your video drivers need updating. May not work, but couldn't hurt.